Platinum is a less liquid investment market than gold or silver, but high price volatility can generate greater returns for investors. Industrial demand for platinum is influenced by different factors, such as gold and silver, which affect their relative performance. On the other hand, platinum tends to perform better during times of economic growth. When manufacturing and industrial industries thrive, platinum prices often do, too.
Therefore, it is a valuable short-term investment that usually generates higher immediate returns compared to gold. However, this value is accompanied by volatility, which can fluctuate dramatically. As a result, platinum may be more suitable for investors with a higher risk tolerance. Gold has long been popular as a financial asset and because of its aesthetic value.
Platinum is another precious metal used in jewelry and also has industrial applications. Both can be good investment options, but there are differences in terms of long-term stability and price fluctuations. In the future, platinum has both positive and negative catalysts in terms of investment. On the positive side, industrial and jewelry demand is fairly constant, general demand tends to exceed supply, known reserves of platinum are very small and metal is very expensive to extract.
Because of its applicability to a greater number of industries, platinum is driven more by industrial supply and demand, and the price of platinum fluctuates more frequently than gold. That said, if the economy is on an upward trend and industrial and manufacturing industries are on the rise, then platinum can be a great short-term investment with immediate returns much higher than gold. Throughout history, there have been times when gold has been traded at a higher premium than platinum and vice versa. They usually have a small premium on the spot price, but you won't have to pay annual management fees like you would with a platinum ETF.
The price differential between the two represents supply and demand and the economic problems that affect the two metals independently, including the importance of platinum in the automotive industry and the status of gold as a haven during economic downturns. These programs allow you to invest in physical platinum bars and, at the same time, get the same tax benefits as a regular IRA retirement account. Over a 32-year period, there were some historical cases in which the price of gold per ounce surpassed platinum. For some, this is seen as a catalyst for the appreciation of the price of platinum; for others, it is simply a sign that times have changed.
There are only a handful of platinum coin and ingot options, much less than the gold and silver selection.